Bonds & Stocks
Strong evidence that the US labor market is slowing rippled through markets Friday, adding weight to bets on Federal Reserve rate cuts while sinking Treasury yields and lifting stocks. The jobless rate ticked up to 4.3%, the highest level since late 2021, and two-year yields tumbled 11 basis points to 3.48%. Money markets priced in a 98% probability of a rate cut in September.
Economy
American companies are struggling to cope with the uncertainty and complexity of the tariff regime, with one business owner saying "it's never been this complicated" after 40 years of experience. The bureaucratic burden of compliance is a challenge, particularly for smaller companies, which must trace the origin of goods and document their contents.
World
India's Finance Minister Nirmala Sitharaman said the country will continue buying Russian oil, signaling its intent to defy US President Donald Trump's demands to halt the purchases. The move has irked the Trump administration, which doubled tariffs on the South Asian nation to 50%, among the highest in the world. Commerce Secretary Howard Lutnick in an interview with Bloomberg TV reiterated the White House’s demand that India stop buying Russian oil.